Q.1 What do you mean by SGST?
Ans. Under GST, SGST is a tax levied on Intra State supplies of both goods and services by the State Government and will be governed by the SGST Act. As explained above, CGST will also be levied on the same Intra State supply but will be governed by the Central Government.
For example:- Rajesh is a dealer in Maharashtra who sold goods to Anand in Maharashtra worth Rs. 10,000. The GST rate is 18% comprising of CGST rate of 9% and SGST rate of 9%. In such case, the dealer collects Rs. 1800 of which Rs. 900 will go to the Central Government and Rs. 900 will go to the Maharashtra Government.
Q.2 Define Business vertical?
Ans. Business vertical means a distinguishable component of an enterprise that is engaged in the supply of individual goods or services or a group of related goods or services which is subject to risks and returns that are different from those of the other business verticals.
Q.3 Define casual taxable person?
Ans. Casual taxable person means a person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business, whether as principal, agent or in any other capacity , in the taxable territory where he has no fixed place of business
Q.4 Define Composite Supply?
Ans. Composite supply means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply.
Q.5 Define Continuous Supply of Goods?
Ans. Continuous supply of goods means a supply of goods which is provided or agreed to be provided continuously or on recurrent basis, under a contract, whether or not by means of a wire, cable, pipeline or other conduit, and for which the supplier invoices the recipient on a regular or periodic basis and includes supply of such goods as the Government may , subject to such conditions, as it may by notification, specify.
Q.6 Define the term India.
Ans. India means the territory of India as referred to in article 1 of the Constitution, its territorial waters, seabed and sub-soil underlying such waters, continental shelf, exclusive economic zone or any other maritime zone as referred to in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976, and the air space above its territory and territorial Waters.
Q.7 Define different classes of officers for the Administration under SGST, Act.
Ø Commissioner of State tax
Ø Additional Commissioners of State tax,
Ø Joint Commissioners of State tax,
Ø Deputy Commissioners of State tax ,
Ø Assistant Commissioners of State tax
Ø State tax Officers
Ø any other class of officers as it may deem fit
Q.8 Explain the scope of “Supply” under the SGST, Act?
The expression “supply” include:
Ø all forms of supply of goods or services or both such as sale, transfer , barter exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business;
Ø import of services for a consideration whether or not in the course or furtherance of business;
Ø the activities specified in Schedule I, made or agreed to be made without a consideration; and
Ø the activities to be treated as supply of goods or supply of services as referred to in Schedule II.
Notwithstanding anything contained in sub-section (1),––
Ø activities or transactions specified in Schedule III; or
Ø such activities or transactions undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities, as may be notified by the Government on the recommendations of the Council shall be treated neither as a supply of goods nor a supply of services.
Subject to the provisions of sub-sections (1) and (2), the Government May , on the recommendations of the Council, specify , by notification, the transactions that are to be treated as—
Ø a supply of goods and not as a supply of services; or
Ø (b) a supply of services and not as a supply of goods.
Q.9 How tax liability is determined on composite and mixed supply?
Ans. The tax liability on a composite or a mixed supply shall be determined in the following manner, namely: —
Ø a composite supply comprising two or more supplies, one of which is a principal supply , shall be treated as a supply of such principal supply; and
Ø a mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax.
Q.10 Explain Time of Supply of Goods?
Ans. Under GST the point of taxation ,i.e the liability to pay CGST/SGST, will arise at the time of supply as determined for goods and services. There are separate provisions for time of supply for goods and time of supply for services. Time of supply means the point in time when goods/services are considered supplied’. When the seller knows the ‘time’, it helps him identify due date for payment of taxes .CGST/SGST or IGST must be paid at the time of supply. Goods and services have a separate basis to identify their time of supply
Q.11 What is the tax liability on composite and mixed supplies under Punjab SGST?
Ans. The tax liability on a composite or a mixed supply shall be determined in the following manner, namely: —
(a) a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply; and
(b) a mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax.
Q.12 What are the provisions related to the Change in rate of tax in respect of supply of goods or services?
Ans. The time of supply in respect of goods or services or both when there is a change in the rate of tax ,it shall be determined in the following manner, namely:–
(a) in case the goods or services or both have been supplied before the change in rate of tax,––
(i) where the invoice for the same has been issued and the payment is also received after the change in rate of tax, the time of supply shall be the date of receipt of payment or the date of issue of invoice, whichever is earlier; or
Q.13 What do you mean by address on record?
Ans. Address on record means the address of the recipient as available in the records of the supplier.
Q.14 Define the term Agriculturist.
Ans. As per the provisions of Punjab SGST Agriculturist means an individual or a Hindu Undivided Family who undertakes cultivation of land–
(a) by own labour, or
(b) by the labour of family, or
(c) by servants on wages payable in cash or kind or by hired labour under personal supervision or the personal supervision of any member of the family;
Q.15 What do you mean by drawback as per the Punjab SGST Act.?
Ans. The Drawback, in relation to any goods manufactured in India and exported, means the rebate of duty, tax or cess chargeable on any imported inputs or on any domestic inputs or input services used in the manufacture of such goods.
Q.16 Define the term location of the supplier of services.
Ans. It means,-
(a) where a supply is made from a place of business for which the registration has been obtained, the location of such place of business;
(b) where a supply is made from a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment;
(c) where a supply is made from more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the provisions of the supply; and
(d) in absence of such places, the location of the usual place of residence of the supplier;
Q.17 Define the term Business as per Punjab GST Act 2017
Ans. As per the provisions of Act Business means
Ø any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit;
Ø any activity or transaction in connection with or incidental or ancillary to above trade or commerce
Ø any activity or transaction in the nature above mentioned trade whether or not there is volume, frequency, continuity or regularity of such transaction.
Ø supply or acquisition of goods including capital goods and services in connection with commencement or closure of business;
Ø provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members;
Ø admission, for a consideration, of persons to any premises;
Ø services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation;
Ø services provided by a race club by way of licence to book maker in such club; and
Ø any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities;
Q.18 What do you mean by family?
Ans. family” means,—
(i) the spouse and children of the person, and
(ii) the parents, grand-parents, brothers and sisters of the person if they are wholly or mainly dependent on the said person;
Q.19 Give an example of mixed supply
Ans. A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices when supplied for a single price is a mixed supply. Each of these items can be supplied separately and is not dependent on any other. It shall not be a mixed supply if these items are supplied separately;
Q.20 Who is non-resident taxable person
Ans. A non-resident taxable person” means any person who occasionally undertakes transactions involving supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India.
Q.21 Define Output tax?
Ans. “Output tax” in relation to a taxable person, means the tax chargeable under this Act on taxable supply of goods or services or both made by him or by his agent but excludes tax payable by him on reverse charge basis;
Q.22 Define the term Person?
Ans. “Person” includes—
(a) an individual;
(b) a Hindu Undivided Family;
(c) a company;
(d) a firm;
(e) a Limited Liability Partnership;
(f) an association of persons or a body of individuals, whether incorporated or not, in India or outside India;
(g) any corporation established by or under any Central Act, State Act or Provincial Act or a Government company as defined in clause (45) of section 2 of the Companies Act, 2013;
(h) any body corporate incorporated by or under the laws of a country outside India;
(i) a co-operative society registered under any law relating to co-operative societies;
(j) a local authority;
(k) Central Government or a State Government;
(l) society as defined under the Societies Registration Act, 1860;
(m) trust; and
(n) every artificial juridical person, not falling within any of the above;
Q.24 Define the term Place of business?
Ans. Place of business includes––
(a) a place from where the business is ordinarily carried on, and includes a warehouse, a godown or any other place where a taxable person stores his goods, supplies or receives goods or services or both; or
(b) a place where a taxable person maintains his books of account; or
(c) a place where a taxable person is engaged in business through an agent, by whatever name called.(place of business of agent).
Q.25 What you mean by Principal Supply?
Ans. “Principal Supply” means the supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary or incidental therto.
Q.26 What is the term telecommunication service?
Ans. Telecommunication service” means service of any description (including electronic mail, voice mail, data services, audio text services, video text services, radio paging and cellular mobile telephone services) which is made available to users by means of any transmission or reception of signs, signals, writing, images and sounds or intelligence of any nature, by wire, radio, visual or other electromagnetic means.
Q.27 What do you mean by Turnover in State?
Ans. Turnover in State means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis) and exempt supplies made within a State by a taxable person, exports of goods or services or both and inter-State supplies of goods or services or both made from the State by the said taxable person but excludes central tax, State tax, Union territory tax, integrated tax and cess.
Q.28 Define the term Voucher.
Ans. Voucher means an instrument where there is an obligation to accept it as consideration or part consideration for a supply of goods or services or both and where the goods or services or both to be supplied or the identities of their potential suppliers are either indicated on the instrument itself or in related documentation, including the terms and conditions of use of such instrument;